CompoSecure (CMPO, Financial), in partnership with Baanx and MetaMask, has introduced an innovative payment card designed to integrate self-custody crypto wallets with everyday spending. This metal payment card allows users to make direct payments from their MetaMask wallets, bypassing conventional banking channels.
The product was first showcased at ETHDenver last month and is expected to become available globally in the second quarter of 2025. This development marks a significant step toward enhancing the practicality and accessibility of cryptocurrency for daily transactions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for CompoSecure Inc (CMPO, Financial) is $15.21 with a high estimate of $17.00 and a low estimate of $14.00. The average target implies an upside of 41.00% from the current price of $10.79. More detailed estimate data can be found on the CompoSecure Inc (CMPO) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, CompoSecure Inc's (CMPO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CompoSecure Inc (CMPO, Financial) in one year is $2.03, suggesting a downside of 81.19% from the current price of $10.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CompoSecure Inc (CMPO) Summary page.
CMPO Key Business Developments
Release Date: March 05, 2025
- Net Sales Growth: 8% growth in net sales for the full year 2024.
- Q4 Net Sales: Increased by 1% to $100.9 million.
- International Net Sales: Up 7% to $15.4 million in Q4.
- Gross Profit: $52.5 million in Q4, representing 52.1% of net sales.
- Net Loss: $48.4 million in Q4 compared to net income of $31 million last year.
- Adjusted EBITDA: Decreased by 10% to $33.6 million in Q4.
- Adjusted Net Income: Increased by 8% to $24.8 million in Q4.
- Adjusted EPS: $0.27 per basic and $0.20 per diluted share in Q4.
- Full Year Gross Margin: 52.1% compared to 53.5% in 2023.
- Full Year Adjusted EBITDA: Increased 4% to $151.4 million.
- Full Year Adjusted Net Income: Increased 11% to $98.2 million.
- Cash and Cash Equivalents: $77.5 million as of December 31, 2024.
- Total Debt: $197.5 million as of December 31, 2024.
- Free Cash Flow: Up 62% to $84.9 million for 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CompoSecure Inc (CMPO, Financial) delivered 8% growth in net sales for 2024, showcasing robust free cash flow generation.
- The company achieved a 60% reduction in net debt, improving its balance sheet significantly.
- CompoSecure Inc (CMPO) reported its first quarter of positive net contribution for Arculus in Q4 2024.
- International sales grew by 11%, highlighting successful expansion in key global markets.
- The company launched several high-profile metal payment cards globally, including partnerships with Citi, Barclays, and JetBlue.
Negative Points
- Fourth quarter net sales were essentially flat, and adjusted EBITDA decreased by 10% due to strategic investments.
- Net loss for Q4 was $48.4 million compared to net income of $31 million in the previous year, driven by changes in fair value of liabilities.
- Gross margin declined from 53.5% in 2023 to 52.1% in 2024 due to inflationary pressures and new product constructions.
- The company faces potential risks from global economic tensions, including tariffs, which could impact raw material costs.
- Despite positive developments, the company is not providing detailed quarter-by-quarter guidance, creating uncertainty about future performance.
